First Home Owner's Grant (FHOG) Question (SA)

lane8 on 07/07/2021 - 21:09

Looking to build with my partner in SA.

We recently bought a block of land for $265k. The FHOG grant in SA is $15k, however our total value of the house with the building contract cannot be > $575k to remain eligible for the grant which means our build should not exceed $310k.

I've had friends that have excluded things from the building contract - AC, stormwater, fencing, driveway concreting & perimeter walkways, rain water tank & pump etc. to keep their total market value under $575k.

Just wondering if anyone has any knowledge with doing similar things after handover or outside of the build contract to keep costs low to remain eligible for the FHOG? Also are there any issues from a legal standpoint in doing so as this would technically increase the market value of the house?

Financial

Comments

  • pharkurnell on 07/07/2021 - 21:57

    Also are there any issues from a legal standpoint in doing so

    What lying to them? Dont you have to sign papers saying that what you've told them is not 100% manure?

  • WreckTangle on 07/07/2021 - 23:43
    +1

    Some things you might need for an occupancy certificate - we needed a water tank and i wonder about stormwater provisions too (not SA though)

  • jjjaar on 08/07/2021 - 09:29
    +1

    If all of those elements are actually done at a later date and aren’t built within the building contract then that won’t be a legal issue as you’re being genuine with your grant application.

  • spal on 08/07/2021 - 09:41
    +1

    Besides everything else, how are you planning on funding the additional construction work? Banks would lend you only what is on the building contract. If the plans show air conditioning and storm water, bank will need these to be on the same contract. Banks review and value your building costs before lending. They would not lend for buildings for which you cannot get occupancy permit. Unless you show to the banks supplementary works contracts and funds to finance the additional work. Mind you if you give banks the contracts, it will remain in your loan file and in case of an investigation can be requested.

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